With the proliferation of co-working solutions in India, would the problem of finding an office space be over? While functional workstations may be in supply, the demand for high quality productive spaces at affordable rates is still not being met. What is the solution for the same?

There are basically two kinds of players in the serviced office space – co-working and premium business centres. On one end of the spectrum, co-working spaces target early-stage companies with economical plans and on the other end, business centres offer the flexibility of a small office at nearly 40% premium over a traditional lease office. A start up by the name Insta office offers solution to this. The startup’s model rests on disrupting the existing value chain of commercial leasing. It structures partnerships with landlords, whereby they can earn high rental yields from their spaces and customers can get a high degree of flexibility.

As a solution to the growing end-to-end office space requirements, the start up offers furnished office spaces, meeting rooms, virtual offices, business centres and conference rooms. Starting with a single business centre in Gurgaon, today it has more than 50,000 sq ft of area under management, spread across 10 centres in three cities, namely Gurgaon, Delhi and Bangalore.

How has the start up been able to pull on the same? The answer is that it had raised external capital from a bunch of investors. Does this imply that this would be an end to road for co- working spaces?

The Realty Sector in Mumbai is witnessing its worst slump ever, with market rates of properties in several areas, including south Mumbai, dipping below the ready reckoner rates which are values of properties, determined by the government for payment of stamp duty. These rates, published annually, impact the construction cost of projects, as several premiums and charges collected by the civic bodies and the government itself are linked to the ready reckoner values. According to sources, many prominent developers and industry watchers have stated that never in the history of the city have they witnessed such a phenomenon, even as debt-laden builders, struggling with slow sales, unsold apartments, and delayed/stalled projects, are pulling out all stops to attract buyers. According to a recent research report, the market rates of residential properties in Colaba (Shahid Bhagat Singh Road) is around Rs 40,000 per sq ft, while the ready reckoner rates for the same properties is at least Rs 10,000 more. Similarly, the market rates of residential properties in Dadar West is around 30,000 per sq ft, whereas the ready reckoner rates in the area are pegged at Rs 40,000 to Rs 45,000 per sq ft. In parts of Powai, the current ready reckoner rate is Rs 27,000 per sq ft while flats are being offered for Rs 25,000 per sq ft or less. The report further reveals that since 2015 when the market was sluggish but wasn’t facing such complete slump, the ready reckoner rates have gone up by around Rs 2,000 to Rs 5,000 per sq ft in many parts of Mumbai, whereas the market prices have remained the same or worse, dropped by Rs 3,000 to Rs 4,000 per sq ft. Does this mean that the government has been increasing ready reckoner rates by around 15% per year and that the market prices have remained flat? Shouldn’t Ready reckoner be the true barometer of real estate prices? How could we treat it as a revenue machine? The NAREDCO, an autonomous regulatory body affiliated to the Ministry of Housing and Urban Affairs, has affirmed there is a discrepancy between the market prices and the ready reckoner rates, saying the change has come about with the introduction of Real Estate Regulatory Authority (RERA), wherein the carpet area of a property has been defined. Developers are now selling properties at carpet area. As a result, areas such as Colaba, Bandra, Santacruz, and Thane are witnessing higher ready reckoner rates compared to the actual market price. So is this the chance for the buyers to cash in on opportunity to make investment, particularly when the Developers are offering slew of incentives to them?

In an urban setting like Chennai, parks serve multiple purposes. They Not only provide the essential green cover but also provide a much-needed source of recreation and fitness to the community at large. However, the inevitable urban expansion and an increase in emissions have reduced the potential for evaporative cooling, thus leading to Urban Heat Islands (UHIs). Parks can play a vital role in bettering air quality, mitigating UHIs, and improving water levels. Parks help in improving physical and mental health too. In cities, the benchmark is that open spaces comprise of about 15-20 per cent of the total area. London boasts of 40 per cent of its areas as parks, New York City is at 14 per cent, and Shanghai drops to only 2.6 per cent. The denser the city, the lesser are the areas for parks. What is the role of the government towards improving this situation? The answer is as a part of the smart city mandate, there are several projects in the pipeline to have more parks within the city. Chennai city has 522 parks, 122 traffic islands and 118 medians that are maintained with greenery. As and when the OSR is handed over to the Greater Chennai Corporation, it is developed into parks or playgrounds.

The Commercial buildings in Chennai are most known for violating safety protocols, the fire being one of the most important. While Chennai’s latest tragedy relating to fire did not result in a loss of life, goods in excess of Rs 400 crore were destroyed. What is the reason for the same? Is it due to the government’s poor enforcement of periodic audits, that many commercial buildings continue to flout norms despite inherent risks? In view of the mounting fire accidents being witnessed in high-rise buildings such as hospitals, malls, theatres, etc, why are they not addressing the issues concerning the commercial complexes since it is risky to the floating population? Don’t Commercial complexes carry a substantial inventory of flammable materials like wood (shelves, interiors), textiles, synthetic garments, carpets, false ceilings and other risk factors including but not limited to high power load in the form of lighting, fans, and ACs? The National Building Code 2016 clearly lays down the practices to be followed by such complexes for fire safety. Norms such as the number of extinguishers, sprinkler systems, fire alarm systems and fire hydrant systems, are mentioned as per the height, purpose and location of the building.The statutory licenses to be obtained are pertaining to local body government approvals of the plan. By issuing licenses, the certifying agencies are supposed to carry out annual inspections of the installations in order to validate their serviceability. While it is impossible to raze every violated construction, the government cannot be absolved of full responsibility; the relevant authorities must insist on fire safety provisions as a retrofit since mishaps occur as the norms are flouted and statutory requirements are not complied with.Unfortunately, the certifying authorities and owners of such buildings become lax in implementing periodical audits, with less attention being paid to older structures. Shouldn’t buildings, which do not comply with the required safety regulations must be sealed till the time necessary safety features are incorporated?

The recent research report of a real estate advisory company, in 2016 and the first quarter of 2017, residential projects including townships across the country have attracted an investment of over Rs 26,000 crore. Another research report reveals that residential properties in the Rs 35 lakh price bracket accounted for the majority of sales in at least four out of seven major Indian cities last year. The report further states that this is the new era for housing in the Indian real estate sector. It is a reflection of burgeoning buyers’ confidence in the wake of government reforms witnessed in the recent past. The centre’s focus on affordable housing and rate cuts are meant to encourage primary beneficiaries of the scheme lower income home-buyers. With RERA in place and GST already making an impact with its national roll out, the gloom, whatsoever, created by demonetisation is gone and the realty sector is showing clear signs of revival. Does this imply that this is the best time for buying or owning a dream home in India, particularly when the home loan rates are considerably low now and more particularly as the largest public sector bank in India has also reduced its home loan lending rates by 25 basis points, for loans upto Rs 30 lakh, to 8.35 per cent?

“Urapakkam” is a place located a few kilometers away from Tamabaram. The city which was relatively unknown a few decades back, has now made itself known, since many software companies and other industries that have been set up in the nearby areas. The city, which is now under the CMDA, is expanding its wings. It has now become a hotbed for residential destinations, particularly the software and more particularly the Accenture Technologies, that have set up their company at Perungalathur. Urapakkam is on the brink of emerging as a real estate destination, due to the proposed Mofussil Bus Terminus in the neighbourhood. The area which offers easy access to all parts of the city through the GST Road that connects it to commercial, IT, industrial and manufacturing hubs including key centres like Tambaram, OMR, Poonamalee, Maduravoyal, Guindy and Oragadam. Does this mean that owning an asset in one of the fastest growing suburbs of the city, yield higher result or investment? Is this the right time to invest in property in Urapakkam?

The Government of India had launched “Housing for All” in rural areas in November 2016 under which the government along with the Ministry of Housing and Urban Development proposes to provide an environment friendly and secure house to every rural household by 2022. The government had in June 2015 given its approval for “Housing For All, 2022” for urban areas which provided for rehabilitation of slum dwellers, promotion of affordable housing for weaker sections through credit-linked subsidy and subsidy for beneficiary-led individual house construction or enhancement.

The Ministry, in a bid to further fasten the programme stated that by 2020, 2 crores houses would be created in Rural Areas. According to the Ministry of Housing and Urban Development, a universal Affordable Housing scheme would give a big boost to the construction industry as 1.2 crore dwellings will be built in three years under urban component and another 1.02 crore units under its rural component by March 2019. The government had also announced a new PPP (Private Public Partnership) Policy for Affordable Housing that allows extending central assistance of up to Rs 2.50 lakh per house to be built by private builders even on private land, besides opening up immense potential for private investments in affordable housing projects on government land in urban areas.

According to a recent report of the Reserve Bank of India, the average housing price in the Quarter 2 of the fiscal year 2017, rose by 8.7% across ten major cities, barring the city of Chennai and Kochi. The Apex Bank, released its Housing Price Index (HPI) for the first quarter of the fiscal, wherein the realty sector has witnessed a recorded growth of 8.7% on annual basis as against 10.4 % against the previous quarter. Housing prices rose maximum by 18.2 per cent in Kanpur, while the maximum fall of 11.2 per cent was witnessed in Chennai, indicating large divergences in city-wise housing price movements. On quarter-on quarter basis, the all-India housing index recorded an increase of 3.8 per cent, with eight of the ten cities recording a rise in the latest quarter, the statement said. Would Chennai see an increase prices of land?

According to the recent research report of a leading real estate advisory firm, the office leasing across top 9 cities in the country had dropped marginally to 1% year – on – year at 10 million square feet in the Q3 of the current financial year. According to the Report, however the sales may pick up in the Q4. The total office space absorption in the Q3 of the year 2017 was around 28.9 million, wherein Bangalore registered office leasing grabbing a 31% share of the overall demand, followed by the National Capital Region (NCR) with a 25% share, Hyderabad and Chennai with 12% each, Mumbai with 10%, Pune with 8% and Kolkata grabbing a 2% share. According to the report, with the 8% share of total leasing volume in the Q3, co-working operators are making their presence felt in the market and the overall commercial market would remain stable despite the economic slowdown and increasing concern about the disruption from the artificial intelligence, automation and stringent data security laws. According to the Report, around 90 million sq ft of office space is under various stages of construction at present, which would likely increase the current total stock by 16% in the next three years. The report has also suggested that office rents are likely to see an upward growth trajectory specially in grade A buildings with an average annual increase of 4-5% over the next three years likely in India across cities. Would we see an increase in the co – working space particularly the major cities in the country?

Realty stocks climbed as much as 18% on resumption of trading in Mumbai after the Diwali weekend. Kolte-Patil Developers, Sunteck Realty , Puravankara, and Sobha registered fresh 52-week highs, with buyers expected to reward developers that have good completion and delivery records. Shares of Arihant Superstructures, Ansal Buildwell, DLF, Anant Raj, Godrej Properties and Peninsula Land also rose between 3% and 8%. What is the reason for the same? The answer is that with the uncertainty around the implementation of Real Estate (Regulation & Development) Act is now over, the formation of regulatory authorities in key property markets has helped build confidence among home-buyers. These factors, combined with low home-loan interest rates and rising affordability of residential units, could stoke a revival in demand in the second half of the year. The residential realty sector is expected to witness an uptick in residential new sales in the coming quarters across key markets, driven by favourable macros, low interest rates, improving affordability and significant pent-up demand. Also the interest rate subvention for first-time buyers from the middle income group may incentivise fence-sitters to buy homes. It is also predicted that office space demand would remain strong. Shares of Godrej Properties, Sobha and Kolte-Patil have appreciated between 109% and 219% since the beginning of the year, since the developer’s operating cash flow remains positive. What about the debt that may increase on account of some land payments?